SIMI call for reduction in car dealership rates

OTOR DEALERS are looking for a reduction in the rates applied to their premises, which they say is not reflective of the reduction…

OTOR DEALERS are looking for a reduction in the rates applied to their premises, which they say is not reflective of the reduction in rental value of facilities, nor does it take into account the huge reduction in sales and the torrid trading conditions of the motor industry at present.

“Everyone is aware of the level of investment made by the motor industry over recent years into really state-of-the-art premises and it didn’t go unnoticed that as soon as the premises was finished, almost the first people in line were the local authorities, congratulating the dealer by raising the rates in recognition of the improved premises,” says Alan Nolan, director general of the Society of the Irish Motor Industry (SIMI).

“Dealers are operating at one-third of what they previously were, and in order to survive at that level, we have seen service providers to cut the cost of their product and try and keep the service at the same.

“Survival is based on recognition of that fact, and the exact opposite has been the case with rates, and it has been a major cause of resentment, anger and frustration for our members.”

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A spokesman from the Dún Laoghaire-Rathdown County Council finance department acknowledged that many businesses are currently under pressure, given the difficult economic climate – however, he said it would be not be feasible to provide special exemptions for any particular industry. Furthermore, there is no legal basis for the local authority to amend the rate once it has been adopted.

He explained: “Dún Laoghaire-Rathdown County Council is conscious of the need to keep rates low and in 2009, the commercial rate only increased by 2.75 per cent, the lowest increase in the Dublin region and good value considering the increase in rates for the five years since 2004 has averaged 1.91 per cent per annum, compared with an average increase in inflation of 3.72 per cent per annum.

“In preparing the 2010 budget, the Council, while under pressure to maintain the current range and quality of services, will also be conscious of the need to support the business sector as much as possible.”